Former Labor premier criticises uni funding cuts

A former Labor premier and Gonski review member has become the latest eminent figure to criticise the Federal Government's decision to cut university funding to pay for its new education plan.

Prime Minister Julia Gillard has defended taking $2.3 billion from the tertiary sector to give more funding to schools, saying the Government will "moderate the rate of growth" in funding for universities but that funding will still increase.

But Carmen Lawrence, a former WA premier and former federal cabinet minister, says it is a disappointing decision.

"I'm certainly disappointed that the university sector has been singled out particularly because it's one of the sectors sadly that is least able to speak for itself," she told The World Today.

"There's a real danger in funding school improvement by reducing the quality of university education.

"I think it's a disappointing connection that's been made, but let's not lose sight of the fact that the Government has to make decisions like this from time to time and this should be a high priority."

Several university leaders have condemned the decision, including the chairman of the Group of Eight universities, Fred Hilmer.

He has written an opinion piece for Fairfax newspapers, saying it "makes no sense".

The chancellor of Swinburne University of Technology, Bill Scales, who was also on the Gonski review panel, has also told the Financial Review that the cuts to tertiary education are "hard to argue" and "undermine" the sector.

Some universities have calculated what the cuts will mean for them.

2014 School funding formula

$9,271 per primary school student + loading

$12,193 per secondary school student + loading

Loading basis for students:

Low socio-economic background

Indigenous background

Disability

Limited English

Small or remote schools

Curtin University estimates it will receive $5 million less next year and the University of Adelaide expects to lose about $7.5 million a year.

But despite her criticism of the hit to universities, Ms Lawrence has urged all parties to support the Government's plan in an effort to improve education standards across the nation.

"We can't continue to see the divide widen," she said.

"We have a significant problem in Australia with people's background determining the educational outcome - their wealth in particular.

"That's not satisfactory and everybody agrees it's not only a personal but a public waste.

"This is an opportunity not to be missed and I think all the political parties should sign up."

The main battle to push through the schools funding plan lies ahead for the Gillard Government at Friday's Council of Australian Government's meeting.

Ms Gillard has outlined a $14.5 billion funding offer which is contingent on the states paying one-third of the bill.

Already, and as expected for most significant COAG decisions, the states and territories are issuing a series of complaints, claims and conditions to win over their support.

'Takeover bid'

Gonski funding

Extra funding

Total public investment 2014-19

NSW

$5 billion

$87 billion

VIC

$4 billion

$68 billion

QLD

$3.8 billion

$65 billion

WA

$300 million

$38 billion

SA

$600 million

$21 billion

TAS

$400 million

$7 billion

ACT

$100 million

$5 billion

NT

$300 million

$5 billion

Catholic schools

$1.4 billion

$50 billion

Independent schools

$1 billion

$35 billion

Funding is based on a formula of a base amount per student plus "loadings" that are given when certain criteria are met.

The most strident has so far been Western Australia, which says it will only sign on if there are major changes to the plan.

WA Premier Colin Barnett says the $300 million allocated for his state is disgraceful and he wants a new funding model drawn up.

He says it amounts to just $33 million a year for WA.

In contrast, New South Wales is due to receive $5 billion and $3.8 billion would go towards Queensland's education funding.

"If you look at the allocation of this so-called extra money, it's heavily skewed towards the major cities on the east coast," Mr Barnett said.

"There is detail behind this funding proposal, detail that basically gives the Commonwealth Government control over the schools.

"This is nothing short of a takeover bid."

Mr Barnett says he will not change state education policy for that amount, stating the Federal Government "can't buy Western Australia".

But the Prime Minister has argued that he should not reject the extra funding.

"What we have on offer for Western Australian schools is more money and as Premier why wouldn't he want to see more resources going into WA schools?" Ms Gillard said.

"Already the Federal Government contributes $1.2 billion to school education in Western Australia, that's around 27 per cent of what is spent in Western Australia.

"So Premier Barnett has used words like butt out - the Federal Government should butt out.

"But I doubt he wants us to butt out and take $1.2 billion - more than a quarter of the expenditure on schools in his state - with us.

"I'm sure really what the people of Western Australia want to see is me and the Premier working to better resource and improve schools for the future."

Crossbench support

Crossbenchers Rob Oakeshott and Tony Windsor have thrown their support behind the Government's plan.

While concerned about the cut to university funding, Mr Windsor says the changes are "probably the biggest revolution that we've seen in education since I've been alive".

"It actually breaks - and [School Education Minister] Peter Garrett deserves some credit for this - it breaks the nexus between public schools, private schools, religious schools," he said.

"No-one's been able to do that."

The Prime Minister says she will be striving for agreement on Friday but wants to secure an agreement by June 30 at the latest.

Opposition education spokesman Christopher Pyne has threatened not to honour any agreement unless it is unanimous.